Calculating the Accelerator Oscillator from the Awesome Oscillator

Summary

The document explains the Acceleration/Deceleration Oscillator (AC) as the Awesome Oscillator (AO) minus a five-period simple moving average of AO. AO itself is calculated as the five-period simple moving average of median price minus its 34-period simple moving average. The included indicator code plots AC as a histogram and colors each bar according to whether AC is rising or falling from the prior interval.

The text presents AC as a leading signal that may turn before the broader trend and price do, but it provides no charts, test results, or evidence quantifying that lead. The claimed early warning is therefore an indicator interpretation, not a demonstrated trading edge. It also gives no entry, exit, or risk-management rules, so AC alone does not define a complete strategy.

Key ideas

• AC is calculated by subtracting a five-period moving average of AO from the current AO value.
• AO is the difference between five-period and 34-period moving averages of median price.
• The example colors the histogram according to whether AC increased or decreased from the prior interval.
• The document claims AC can turn ahead of trend and price changes but supplies no supporting performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.